Employers are legally obliged to pay the National Minimum Wage. How does this vary for different workers? Are your employees entitled to any other premiums? Our experts explain all in this article...
Employee pay is governed by the National Minimum Wage Act 2000. This legislation applies to all workers except certain apprentices and close relatives such as a spouse, parent, child or sibling. It is important to note that employers are legally obliged to pay the National Minimum Wage.
An employer who fails to pay the National Minimum Wage may be found guilty of a criminal offence. It is also crucial for employers to monitor any potential changes to the National Minimum Wage. For example, the proposed increase to €9.55 due to take effect from 1 January 2018.
The National Minimum Wage varies depending on age and experience. For example, an ‘experienced adult worker’ can be defined as an employee over the age of 18 with 2 or more years’ experience. They are entitled to the full amount of €9.25 per hour whereas an employee under the age of 18 is entitled to €6.47 per hour.
An employee over the age of 18 but in their first year of employment is entitled to €7.40 per hour. An employee over the age of 18 but in their second year of employment is entitled to €8.32 per hour.
Similarly, apprentices in training are entitled to a reduced rate of the National Minimum Wage. An apprentice in their first year is entitled to €6.93 per hour. An apprentice in their second year is entitled to €7.40 and in their third year €8.32 per hour.
Employees may request a written statement of their average hourly rate of pay for any pay reference period falling within the previous twelve months. An employer has 4 weeks to meet such a request.
Finally, employees who are expected to work on a Sunday qualify for a ‘Sunday Premium’. This is an additional monetary sum on top of their hourly rate of pay. Although this premium is not expressly set out in legislation, recent tribunal outcomes have suggested that time and a third to be considered as a ‘reasonable’ premium.
If you have any questions in relation to employee pay, please contact our expert employment law advisors on the 24 Hour Advice Service on 01 855 50 50
